Bitcoin Holders Face Tough Year in 2023 as Negative Sentiment Lingers

• Bitcoin holders may face a tough year in 2023, according to two on-chain metrics.
• CryptoQuant analyst Gigisulivan predicted that BTC may attempt to trade in the $20,000 to $22,000 price range following the release of favorable Consumer Price Index data.
• Another CryptoQuant analyst, Yonsei_dent, found that negative sentiment continues to grow as long-term holders of Bitcoin intensify their coin distribution.

Bitcoin [BTC] holders might have a tough time this year as the king coin continues to grapple with negative sentiment since the collapse of FTX. This is according to two on-chain metrics as revealed by CryptoQuant analysts Gigisulivan and Yonsei_dent.

Gigisulivan analyzed BTC’s Stock to Flow Reversion and opined that BTC’s price might dip further below the $16,700 price mark at some point in the current bear market. He predicted that BTC might attempt to trade in the $20,000 to $22,000 price range following the release of favorable Consumer Price Index data (CPI) next week. However, the analyst concluded that holders should not expect much, adding that, „Just a thought, considering 2023 could be worse than 2022 once we know what sort of recession we are getting.“

Yonsei_dent, on the other hand, assessed BTC’s Support Adjusted Dormancy indicator and found that it has been on an uptrend since the middle of December. He considered historical cues from BTC’s performance in the bear market of 2018 and found that it indicated an increase in sell-offs to hedge against further losses on investments.

With lingering negative sentiment since the fallout of FTX, many BTC holders have failed to see profits on their investments. This has caused a lot of anxiety and uncertainty amongst the crypto community, and it looks like the situation might not get any better in the near future. As such, it would be advisable for holders to remain cautious and look for other investment opportunities in order to protect their capital.